investigating related matters
NORTH CANTON, Ohio, Dec. 21 /-/ -- As announced on October 2, 2007, Diebold, Incorporated (NYSE: DBD) has been engaged in an ongoing discussion with the Office of the Chief Accountant (OCA) of the Securities and Exchange Commission (SEC) regarding the company's prior, discontinued practice of recognizing certain revenue on a "bill and hold" basis. Bill and hold is when ownership of a product contractually passes to the customer and revenue is recognized by the supplier prior to delivery of the products to the customer.
Diebold is continuing its dialogue with the OCA so that it can determine the most appropriate revenue recognition method to replace its bill and hold practice, and will provide further information once it has received sufficient guidance. Upon receiving this guidance, Diebold will be in a position to communicate a new method of revenue recognition. The company will also then provide revenue estimates for the full-year 2007.
This change in the company's bill and hold revenue recognition practice would only affect the timing of recognition of certain revenue. Diebold does not anticipate that the change in the timing of revenue recognition would impact previously reported cash provided by operating activities or the company's net cash position.
Also, as previously disclosed, the SEC's formal, non-public investigation is still in process. Additionally, the company recently learned that the U.S. Department of Justice is conducting a parallel investigation. Diebold continues to cooperate with the SEC, and will cooperate with the Department of Justice if requested, in connection with these investigations and cannot predict the length, scope or results of the investigations, or the impact they may have on the results of the company's operations.
As a result of the SEC's ongoing investigation, the company and its audit committee, with the assistance of their outside advisors, are reviewing these issues. The company anticipates this review will be completed in the first quarter of 2008. Any material adjustments identified as a result of this review will be included in amendments to the company's financial statements. While any amended financial statements would address all the issues identified in the review, the government investigations remain ongoing and there can be no assurance that the results of these investigations will not impact previously reported financial statements.
In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements give current expectations or forecasts of future events and are not guarantees of future performance. These forward-looking statements relate to, among other things, the ongoing SEC and U.S. Department of Justice investigations and the completion of the review being conducted by the company and its audit committee. The use of the words "believes," "anticipates," "expects," "intends" and similar expressions is intended to identify forward- looking statements that have been made and may in the future be made by or on behalf of the company.
Although the company believes that these forward-looking statements are based upon reasonable assumptions, these forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The company is not obligated to update forward-looking statements, whether as a result of new information, future events or otherwise.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to the impact on the company's financial statements of its change in its revenue recognition practices for its North America business segment and any other business segment and the results of the SEC and U.S. Department of Justice investigations and the review being conducted by the company and its audit committee.
Diebold, Incorporated is a global leader in providing integrated self- service delivery and security systems and services. Diebold employs more than 15,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA. Diebold reported revenue of $2.9 billion in 2006 and is publicly traded on the New York Stock Exchange under the symbol 'DBD.' For more information, visit the company's Web site at http://www.diebold.com.